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Transaction Processing
System (TPS)
A transaction is a business event that
generates or modifies data stored in an
information system.
A TPS collects and stores data about
transactions and sometimes controls
decisions made as part of a transaction.
A TPS focuses on record keeping and
control of repetitive clerical processes.
(Source: Alter, 1999)
TPS (Contd.)
Design of a TPS is based on
execution details of the transactions;
data content and format; and
rules and policies to be enforced.
TPSs are capable of
enforcing rules and work procedures;
detecting errors, such as missing data,
invalid data, and inconsistent data; and
automating certain decision-making
TPS (Contd.)
Batch Processing: Information on
individual transactions is collected and
stored. Based on a schedule or number
accumulated the transactions are
processed later to update the database.
Examples are processing of checks and other
paper forms, generation of paychecks, and
weekend deposits into ATMs.
Problems - error correction & data currency.
(Source: Alter, 1999)
TPS (Contd.)
Real-time Processing: Each transaction is
processed immediately. An advantage is
immediate error correction.
Examples are airline reservation systems and
bursar/bank systems.
Characterized by quick response and high
availability.
(Source: Alter, 1999)
ERP System - a TPS?
An ERP system encompasses transaction
processing done in various functional
areas of an enterprise.
Actually an ERP system is a hybrid system
that has characteristics of many of the
individual information system types
including the TPS.
(Source: Alter, 1999)
Management Information
System (MIS)
MISs generate summary information for
monitoring performance, maintaining
coordination, and providing background
about the organization’s operation.
Users are both managers and the
employees who receive feedback about
performance indicators.
MISs extract and summarize data from
TPSs.
(Source: Alter, 1999)
MIS (Contd.)
Typically provide pre-specified reports on
a scheduled basis.
MIS provides information; people decide
how to improve performance.
Executive Information Systems (EISs)
take MISs to the next level.
(Source: Alter, 1999)
Executive Information
System (EIS)
EISs offer a highly interactive system that
provides managers and executives flexible
access to information for monitoring
operating results and general business
conditions.
Executives can “drill down” to understand
specific items of concern in more detail.
Data is replenished periodically from
internal and external sources.
(Source: Alter, 1999)
EIS (Contd.)
Typical characteristics of EISs are
user-friendly interfaces;
variety of formats (tables, graphs, etc.);
triggers for exceptional conditions;
multiple levels of detail;and
customizable reports.
EISs help executives find the information
they need whenever they need it and in
whatever form is most useful.
(Source: Alter, 1999)
Decision Support System
(DSS)
A DSS is an interactive IS that provides
information, models, and data
manipulation tools to help make decisions
in semi-structured and unstructured
situations.
In contrast to MIS, a DSS supports
managers and professionals doing largely
analytical work in less structured
situations.
(Source: Alter, 1999)
DSS (Contd.)
The traditional DSS approach includes
interactive problem solving; direct use of
models; user-controllable methods for
displaying and analyzing data; and
formulating and evaluating alternatives.
Examples range from spreadsheets to
customized simulation or optimization
models focusing on specific situations.
(Source: Alter, 1999)
DSS (Contd.)
DSSs support repetitive decision making
by structuring the decision to some extent
and defining procedures and formats.
An example of the repetitive case is the
use of a DSS by insurance agents to help
customers choose the “right” insurance
policy - options, cost and benefits.
(Source: Alter, 1999)
DSS (Contd.)
DSSs support non-repetitive decision
making by providing data, models,
analytical tools, and interface methods.
An example is a system that helps
marketing managers evaluate alternative
marketing plans and track results. Data
includes internal sales results and external
market research databases.
(Source: Alter, 1999)
New Approaches to DSS
Online Analytical Processing (OLAP) and data
mining.
OLAP is the use of online data analysis tools
to explore large transaction databases.
Data mining is the use of data analysis tools
to find patterns in large transaction
databases.
(Source: Alter, 1999)
Data Mining (Contd.)
Examples are customer buying patterns in
grocery stores and statistical profiles of
customers who are likely to switch longdistance carriers.
One of the difficulties in data mining is
the problem of differentiating between
meaningful and spurious patterns.
(Source: Alter, 1999)
Execution Systems
These systems directly support people
doing the value-added work in an
organization.
Examples are systems that help plastic
surgeons design operations and show
likely results to their patients.
Expert or knowledge-based systems are
one type of execution systems.
(Source: Alter, 1999)
Expert Systems
Expert systems support the intellectual
work of professionals engaged in design,
diagnosis, or evaluation of complex
situations requiring expert knowledge in a
well-defined area.
Common applications are medical
diagnosis, troubleshooting, chemical
analysis, data interpretation, etc.
(Source: Alter, 1999)
Office Automation Systems
An OAS facilitates everyday information
processing tasks in offices and business
organizations. They include a wide array
of productivity tools.
Spreadsheets
Word processors, desktop publishing tools
Presentation packages
Personal database systems
(Source: Alter, 1999)
Communication Systems
The broad categories of communication
systems are
Teleconferencing
Messaging systems - e-mail, v-mail, and fax
Groupware (e.g. Lotus Notes)
Intranets and extranets
Knowledge management systems
(Source: Alter, 1999)